The PNUT coin has dropped significantly in value by more than 23% in the last 24 hours, which has people wondering about the reasons behind this huge drop and the impact of news and whale movements on the coin. In this article, we will provide a detailed analysis of the price and news related to the coin, as well as the role of large investors (whales) in influencing the market movement.
Technical analysis
Price trend
The PNUT/USDT 4-hour chart shows a clear bearish trend with a symmetrical triangle pattern forming. This pattern suggests price consolidation before a potential breakout, but the price broke the lower support of the triangle at $0.7678, confirming the downtrend.
The short-term moving averages (MA7 and MA25) show that the currency is in a sharp downtrend, with the price trading below these levels, which reflects strong selling momentum.
A significant increase in trading volume during a decline indicates heavy selling, possibly from large investors or whales.
Impact of whale movements
PNUT is considered a low-liquidity coin compared to major currencies, which means that any large buying or selling operations directly affect the price.
Some whales reportedly withdrew large amounts of the coin to external wallets, raising concerns about future sell-offs. According to sources like Whale Alert, one whale withdrew around 3.8 million PNUT tokens on November 16, 2024, causing investors to panic and increasing selling pressure.
Extreme fluctuations
Small cap coins, like PNUT, are prone to sharp price fluctuations. Whales exploiting these fluctuations with strategies like “buy and sell” hurts small investors.
Related News
The coin saw a massive surge of 447.9% on November 14, 2024, surpassing a market cap of $2 billion. The surge attracted new investors, but weak fundamentals and whale exploitation later led to a sharp decline.
No strong developments
As a meme coin, PNUT relies more on speculation and sentiment than fundamentals, making it vulnerable to rapid rumours and market movements.
Overall market decline
Other cryptocurrencies have seen a general decline, which could have affected PNUT. Coins with a smaller market cap are usually more affected by the overall market trend.
weak investor sentiment
The big decline raised concerns among investors who rushed to sell, which increased pressure on the price.
Expectations
In the short term, the downtrend may continue if the selling pressure persists. The next strong support is expected at $0.742, and the nearby resistance is at $0.86.
In the long term, some analysts say that the currency could rise again if it can regain investor confidence, especially with any positive news or new developments in the project. Some sources expect that the price could reach $2.06 by 2030 if the fundamentals improve.
PNUT coin was affected by several factors that led to its significant decline, including whale movements, weak liquidity, and the general decline in the market. Investors should be careful when dealing with these volatile currencies. This is of course just an analysis and opinion, not financial advice 😊👻
